Soldiers took over two buildings and military bulldozers ripped open roads during the incursion around the town of Rafah, about two kilometres (just over a mile) inside Palestinian territory, witnesses said.

"Armoured and infantry forces are searching the area for terrorist infrastructure. Several Palestinians have been detained for questioning," an army spokesman told AFP.

It is the first time Israeli tanks have pushed so far into southern Gaza since a November 26 truce took effect, although bulldozers and armoured vehicles have carried out several small operations on the Palestinian side of the border.